- Grayscale’s XRP ETF speculation is back after the asset manager showcased XRP prices alongside Bitcoin and Ethereum in a sponsored advertisement.
- XRP’s regulatory status in the United States has improved, fueling hope for Grayscale’s potential return to supporting XRP in its investment products.
In a recent CNBC “crypto watch” segment, viewers were presented with a sponsored display of cryptocurrency prices featuring Bitcoin (BTC), Ethereum (ETH), and, notably, XRP. This advertisement, sponsored by Grayscale, caught the attention of the XRP community and raised questions about the asset manager’s intentions.
Chad Steingraber, a notable member of the XRP community and a professional game designer, brought this development to the forefront through a tweet. Sharing a capture of the CNBC segment, Steingraber pointed out the inclusion of XRP prices alongside BTC and ETH. His tweet triggered a wave of speculation among XRP enthusiasts.
Tell me with a straight face that Grayscale isn’t about to reboot their #XRP ETF funds..
https://t.co/CdzxAGo1Vr pic.twitter.com/TqvnSu1WCV
— Chad Steingraber (@ChadSteingraber) December 28, 2023
Grayscale’s XRP History
To understand the significance of this advertisement, it’s essential to explore Grayscale’s history with XRP. XRP was originally a part of Grayscale’s GDLC and XRP Trust solutions. But in 2021, Grayscale suffered a serious blow when it pulled XRP from its Digital Large Cap fund, citing the Securities and Exchange Commission of the United States (SEC) as the reason for its unregistered status.
Grayscale responded to the SEC’s action by simultaneously initiating the liquidation of its independent XRP Trust. Since some U.S.-based exchanges had delisted XRP owing to regulatory concerns, the legal action made it difficult to convert XRP into dollars.
Grayscale is now working hard to turn its Grayscale Bitcoin Trust (GBTC) into a spot exchange-traded fund (ETF). This is consistent with the larger pattern of spot Bitcoin ETF issuers, including Franklin Templeton, Fidelity, VanEck, Bitwise, Invesco, Galaxy, BlackRock, and WisdomTree, publishing revised S-1 filings revealing allowed participants or fees.
Notably, Michael Sonnenshein, CEO of Grayscale, said in a recent filing that the company has been ready for this development since 2017, with Virtu and Jane Street acting as approved players. Their preparedness shows how committed they have been to joining the ETF market.
Been in this game a long time…we’ve had APs lined up since 2017. $GBTChttps://t.co/WB0udcFEjnhttps://t.co/Vt5Y5FX6H8
Visit our website for details and important disclosures: https://t.co/uQ2VYPWRD4
— Sonnenshein (@Sonnenshein) December 29, 2023
XRP’s Regulatory Landscape
The changing regulatory environment surrounding XRP is a major contributing element to this revived conjecture. XRP has attained greater regulatory certainty in the US despite its previous legal troubles. This newfound clarity could pave the way for Grayscale to reconsider its support for XRP.
XRP has managed to maintain its position in the top 10 cryptocurrencies by market capitalization, boasting a current market value of over $33.86 billion. At the time of writing, XRP was trading at $0.626, with a slight decrease of 1.17% in the last 24 hours. These numbers demonstrate that XRP continues to be a significant player in the cryptocurrency market.
What Lies Ahead for Grayscale and XRP
Although the latest advertisement has stoked conjecture, it’s crucial to remember that Grayscale has not formally revealed its intentions for an XRP ETF. The cryptocurrency community hopes to see what Grayscale announces about its next moves.
Grayscale’s attempts to turn GBTC into an ETF and its comparable goals for an Ethereum ETF point to a larger plan to give investors access to a wider range of cryptocurrency investment possibilities. It’s unclear if XRP will play a role in this plan, but the most recent commercial makes it seem like a possibility.
